Incuspaze Acquires TRIOS To Strengthen Presence In Pune

IPO-bound managed and coworking space provider Incuspaze has acquired Pune-based TRIOS in a cash-and-stock deal. The acquisition of TRIOS, which is a smaller rival of Incuspaze, will help the startup grow its revenue and expand its presence in Pune.

Incuspaze said that the deal supports its plan to reach INR 350 Cr to INR 400 Cr of operating revenue in FY26 and meet growing demand from global capability centres (GCCs) and multinational companies (MNCs).

Founded in 2015 by Pratik Potnis and Tejasa Potnis, TRIOS runs 10 coworking centres in Pune and two in Gurugram. It claims to serve over 125 clients, including MNCs, GCCs, and small businesses.

Founded by Sanjay Choudhary in 2016, Incuspaze is a workspace provider which has a presence across 18 cities in India, including Mumbai, Delhi, Gurugram, Noida, Bengaluru, among others. It claims to own a network of over 33 workspaces in various cities in the country and counts the likes of PhonePe, Flipkart, and Health Prime among its clients.

The acquisition with an eye on expanding presence in Pune comes at a time when players in the coworking space segment are focussing on non-metro regions. Listed coworking space provider Awfis CEO Sumit Lakhani said during the company’s Q4 earnings call that tier 2 cities of India would host the “next flex boom”.

“Enterprises and GCCs are also looking beyond metros into tier 2 cities to access talent and manage their costs. So, tier 2 flex space base stock is expanding fast. And it is projected to contribute almost equivalent to about 30% of the total market by 2028-2029,” Lakhani said.

The development comes months after Incuspaze said in November last year that it was looking to raise about $25 Mn (around INR 211 Cr) in its pre-IPO funding round. However, there has been no further update on the funding round from the startup, which was said to be looking to go public this year.

On the financial front, it turned profitable in FY24. Incuspaze posted a net profit of INR 1.5 Cr in FY24 as against a loss of INR 98 Lakh in the previous fiscal year. Its operating revenue zoomed 77% to INR 88.3 Cr from INR 49.9 Cr in FY23.

The startup is yet to file its financial numbers for FY25.

The acquisition comes at a time when India’s coworking space sector is mushrooming at a rapid pace. As per a report by Mordor Intelligence, the coworking space market in India is expected to reach the $2.9 Bn mark in 2030 from around $2 Bn in 2025, growing at a CAGR of 7%.

The growth spurt for the sector is supported by two major factors – the costs of office spaces have exceeded even the pre-pandemic levels and the number of new-age companies needing office spaces have gone through the roof.

Given the growing market potential, a lot of companies operating in the segment are eyeing a public listing in the near future. While Awfis is the only listed entity in the space, others like Smartworks, DevX and IndiQube have filed their IPO papers. Meanwhile, SEBI recently kept the IPO of WeWork India in abeyance.

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